Ashley Temer is a Financial Representative with Northwestern Mutual who helps professionals, families, and business owners plan for financial security. She’s here for your “Money Minute.”
The stock market is very complex and can be confusing. Here are five strategies to change how you view the markets and become a more competent investor.
- Start by setting a goal. Be specific. Quantify them as much as possible so you know what you are working towards.
- Risk and Reward. Protect your self against risks where you can and understand the role risks plays in helping your investment strategies.
- Build a balanced and diversified strategy that can smooth out the bumps that come with investing.
- Discipline. When the markets shift and you get nervous, resist the temptation to get out. It takes discipline to trust that your plan, over time, will do what it’s designed to do.
- Momentum. Reinvest by using the dividend, interest, and capital gains earned from investments to buy additional shares or units.
Remember, all investments carry some level of risk, including the potential to lose all money invested. So it’s important to work with a financial professional to help build the right plan.